dYdX Trading Becomes Public Benefit Corporation: Foregoes V4 Trading Fees

Decentralized exchange dYdX Trading announces its transformation into a public benefit corporation, emphasizing community alignment by waiving trading fee.
dYdX Trading Becomes Public Benefit Corporation Foregoes V4 Trading Fees
dYdX Trading Becomes Public Benefit Corporation Foregoes V4 Trading Fees

dYdX Trading has recently announced a substantial change in its business model that is causing waves in the blockchain and DeFi worlds.

The platform has made the decision to forgo trading fee earnings for its upcoming v4 platform in an effort to better connect with the objectives of its community.

For dYdX, which had previously functioned as a company in Delaware, the decision to change its legal structure into a public benefit company marked a significant turning point.

Although the platform is still capable of making money, boosting shareholder value is no longer its only goal.

With its goal of democratizing access to financial opportunities through open-source software, dYdX’s realignment with the larger public interest fits in perfectly.

The innovative creator and CEO of dYdX, Antonio Juliano, underscored the significance of this change by noting that they intend to better serve the needs of their community as open-source software developers.

Juliano added that the much-awaited dYdX Chain is about to be released, and that this shift is a key step toward their ultimate aim of total decentralization.

The company’s choice to forgo trading fee profits for its v4 platform, which is set to launch in the coming weeks, is one important part of this shift.

The dYdX Chain, dYdX’s own Cosmos-based blockchain, will host the launch of the v4 platform, which is now in its test net phase.

The choice contrasts with competitors’ practices, such as Uniswap, which recently imposed a 0.15% fee on swapping some tokens.

However, dYdX will continue to receive payment for earlier versions. After v4 is released, Juliano expects a substantial migration to it, but he also pointed out that the company still has a 6-year financial runway.

The mainnet launch of dYdX version 4 is scheduled for the upcoming weeks, and it is now on testnet.

The upgrade will be implemented on the exchange’s private dYdX Chain, a Cosmos-based blockchain designed to sustain its growth. With version 4, crucial exchange tasks like managing order books will be transferred to external entities and validators.

The change for dYdX is in line with its revised public benefit corporation mandate to take into account all stakeholders, not just shareholders.

“As open-source software developers, we want to align as closely as possible with the community’s best interests,” said Juliano.

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